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Non-utility producers fear emission trading

Douglas Smith

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Abstract

This paper reports on the reaction of a non-utility power organization to the emission trading provisions of the Clean Air Act. The proposed amendments now being considered by both houses of Congress would place an absolute cap on the total SO{sub 2} and NO{sub x} emissions that can be released from fossil-fired electric generating plants nationwide. Under the proposal, emissions of SO{sub 2} from fossil-fired plants must be reduced by 9 million tons/year below those of 1980. This would be accomplished in two phases: plants over 100 MW must reduce emissions down to 2.5 lb/MMBtu after 1995; and by 2001 plants larger than 75 MW must not exceed emissions of 1.2 lb/MMBtu of SO{sub 2}.

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What this paper is about

This paper reports on the reaction of a non-utility power organization to the emission trading provisions of the Clean Air Act. The proposed amendments now being considered by both houses of Congress would place an absolute cap on the total SO{sub 2} and NO{sub x} emissions that can be released from fossil-fired electric generating plants nationwide. Under the proposal, emissions of SO{sub 2} from fossil-fired plants must be reduced by 9 million tons/year below those of 1980. This would be accomplished in two phases: plants over 100 MW must reduce emissions down to 2.5 lb/MMBtu after 1995; and by 2001 plants larger than 75 MW must not exceed emissions of 1.2 lb/MMBtu of SO{sub 2}.

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Available abstract

This paper reports on the reaction of a non-utility power organization to the emission trading provisions of the Clean Air Act. The proposed amendments now being considered by both houses of Congress would place an absolute cap on the total SO{sub 2} and NO{sub x} emissions that can be released from fossil-fired electric generating plants nationwide. Under the proposal, emissions of SO{sub 2} from fossil-fired plants must be reduced by 9 million tons/year below those of 1980. This would be accomplished in two phases: plants over 100 MW must reduce emissions down to 2.5 lb/MMBtu after 1995; and by 2001 plants larger than 75 MW must not exceed emissions of 1.2 lb/MMBtu of SO{sub 2}.

Key concepts: Emissions trading, Clean Air Act, Fossil fuel, Natural resource economics, Environmental science, Greenhouse gas, Business, Waste management

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